Real Groovy, a New Zealand music retailer, faces several threats to its business model from changes in technology and competition. Downloading music online has become cheaper and more convenient than buying CDs in stores. Additionally, Apple's iTunes online music store allows customers to legally download songs at lower prices than Real Groovy's CDs. With only four physical locations, Real Groovy also lacks the brand recognition and store presence of larger competitors like JB Hi-Fi that have expanded online and offline. To adapt, Real Groovy should open an online music store and more retail locations to reach more customers in the digital age.